The 4 Safest Places for Retirees to Keep Their Money in July 2025

If you're retired -- or very close to being -- one of the smartest moves you can make right now is optimizing where you store your cash.

You want your cash protected, but also working hard enough to outpace inflation and actually grow.

As of July 2025, the national average checking account pays just 0.07% APY, according to FDIC data. That's practically nothing.

Fortunately, there are better options out there. Some will earn you over 4.00% APY while keeping your funds safe and flexible.

1. High-yield savings accounts (HYSAs)

If you're looking for low risk and high flexibility, an HYSA is your go-to.

Some of the top online banks are offering HYSAs with interest rates between 3.50% and 4.30% APY right now.

These accounts are safe and easy, and include features like:

• FDIC insurance up to $250,000 per account
• Easy access to your funds, usually with no penalties or fees
• No minimums or monthly charges at most online banks

HYSAs are perfect for short-term cash storage. This is money you might need for things like emergency funds, travel cash, or monthly withdrawals. Your money stays liquid, but you're not missing out on returns.

2. Treasury bills (T-bills)

For folks who want maximum safety with a slightly longer time horizon, T-bills are tough to beat.

Yields on 3- to 6-month T-bills are hovering around 4.20% in July 2025. And here's why retirees love them:

• Backed by the full faith and credit of the U.S. government
• Interest is exempt from state and local income taxes
• Excellent for cash you won't need right away

You can buy T-bills straight from TreasuryDirect.gov, or invest through T-bill ETFs in your brokerage account if you want easier access or automatic reinvestments.

3. Money market funds

Money market funds are investment vehicles available through brokerages. Right now, some of the top funds are paying between 4.18% and 4.22% APY.

Why they're worth a look:

• Super easy access to your funds
• Higher returns due to current interest rate levels
• Low risk, though not FDIC insured, they're still very stable

Some brokerages automatically place your uninvested cash into a money market fund -- something to check with your broker.

Personally, I use Fidelity for all my brokerage and retirement accounts. Read my full Fidelity review here to find out why I love them.

4. Laddered certificates of deposit (CDs)

CDs are back in style. And they can work wonders for retirees.

While locking your money away can feel limiting, 12-month CDs are currently paying up to 4.00% APY.

The trick is to use a CD ladder. Instead of putting all your money in one CD, you spread it across several maturity dates. For example, you could buy:

• A 3-month CD
• A 6-month CD
• A 9-month CD
• A 12-month CD

This setup gives you regular access to maturing funds, while still locking in great rates today.

Make your cash work harder -- even in retirement

Letting large chunks of money sit in a checking account might feel secure, but it's a missed opportunity.

With rates still elevated in mid-2025, there's no reason to settle for scraps.

Even small moves -- like switching to a high-yield savings account or laddering a few CDs -- can make a real difference over time. Don't miss the opportunity.